Assessing audit fees: Turnover, inflation & minimum stipend rate

Auditing firms rely on audit fees to generate revenue. The audit fee is generally agreed upon by auditee and auditor. For the calculation of audit fees, no standard formula exists. Pakistan's regulatory body for audit firms ‘ICAP' has imposed certain cost constraints on audit firms. As per...

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Autores principales:	Emad Azhar Ali Syed, Lai Fong-Woon, Sadriwala, Fatima Kaneez, Arockiasamy S
Formato:	article
Lenguaje:	EN FR
Publicado:	EDP Sciences 2021
Materias:	Social Sciences H
Acceso en línea:	https://doaj.org/article/2df93e160f3d469982deebd1f9005562
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spelling	oai:doaj.org-article:2df93e160f3d469982deebd1f90055622021-12-02T17:15:22ZAssessing audit fees: Turnover, inflation & minimum stipend rate2261-242410.1051/shsconf/202112403004https://doaj.org/article/2df93e160f3d469982deebd1f90055622021-01-01T00:00:00Zhttps://www.shs-conferences.org/articles/shsconf/pdf/2021/35/shsconf_icmesh2020_03004.pdfhttps://doaj.org/toc/2261-2424Auditing firms rely on audit fees to generate revenue. The audit fee is generally agreed upon by auditee and auditor. For the calculation of audit fees, no standard formula exists. Pakistan's regulatory body for audit firms ‘ICAP' has imposed certain cost constraints on audit firms. As per the literature, stipend rates have been used rarely to determine audit fees. As a result, this paper examines audit fee determination using variables such as the company's assets, turnover, current ratio, inflation, and minimum stipend rate. These variables are especially influential in a developing country such as Pakistan. To determine audit fees, a panel regression model is being de-veloped. We used data from 40 publicly traded companies from 2014 to 2017 to regress on our model. After extensive testing with the Hausman and F-tests, the fixed effect model is finally applied. Empirically, it was discov-ered that the current ratio, the entity's turnover, and the stipend amount all have a significant positive effect on the calculation of audit fees. T The study's findings have significant implications not only for audit firms, but also for auditees in determining audit fees.Emad Azhar Ali SyedLai Fong-WoonSadriwalaFatima KaneezArockiasamy SEDP SciencesarticleSocial SciencesHENFRSHS Web of Conferences, Vol 124, p 03004 (2021)
institution	DOAJ
collection	DOAJ
language	EN FR
topic	Social Sciences H
spellingShingle	Social Sciences H Emad Azhar Ali Syed Lai Fong-Woon Sadriwala Fatima Kaneez Arockiasamy S Assessing audit fees: Turnover, inflation & minimum stipend rate
description	Auditing firms rely on audit fees to generate revenue. The audit fee is generally agreed upon by auditee and auditor. For the calculation of audit fees, no standard formula exists. Pakistan's regulatory body for audit firms ‘ICAP' has imposed certain cost constraints on audit firms. As per the literature, stipend rates have been used rarely to determine audit fees. As a result, this paper examines audit fee determination using variables such as the company's assets, turnover, current ratio, inflation, and minimum stipend rate. These variables are especially influential in a developing country such as Pakistan. To determine audit fees, a panel regression model is being de-veloped. We used data from 40 publicly traded companies from 2014 to 2017 to regress on our model. After extensive testing with the Hausman and F-tests, the fixed effect model is finally applied. Empirically, it was discov-ered that the current ratio, the entity's turnover, and the stipend amount all have a significant positive effect on the calculation of audit fees. T The study's findings have significant implications not only for audit firms, but also for auditees in determining audit fees.
format	article
author	Emad Azhar Ali Syed Lai Fong-Woon Sadriwala Fatima Kaneez Arockiasamy S
author_facet	Emad Azhar Ali Syed Lai Fong-Woon Sadriwala Fatima Kaneez Arockiasamy S
author_sort	Emad Azhar Ali Syed
title	Assessing audit fees: Turnover, inflation & minimum stipend rate
title_short	Assessing audit fees: Turnover, inflation & minimum stipend rate
title_full	Assessing audit fees: Turnover, inflation & minimum stipend rate
title_fullStr	Assessing audit fees: Turnover, inflation & minimum stipend rate
title_full_unstemmed	Assessing audit fees: Turnover, inflation & minimum stipend rate
title_sort	assessing audit fees: turnover, inflation & minimum stipend rate
publisher	EDP Sciences
publishDate	2021
url	https://doaj.org/article/2df93e160f3d469982deebd1f9005562
work_keys_str_mv	AT emadazharalisyed assessingauditfeesturnoverinflationminimumstipendrate AT laifongwoon assessingauditfeesturnoverinflationminimumstipendrate AT sadriwala assessingauditfeesturnoverinflationminimumstipendrate AT fatimakaneez assessingauditfeesturnoverinflationminimumstipendrate AT arockiasamys assessingauditfeesturnoverinflationminimumstipendrate
_version_	1718381252508123136

Assessing audit fees: Turnover, inflation & minimum stipend rate

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